Chinese investment urged
Shining Building Business Co (鄉林建設) chairman Lai Cheng-yi (賴正鎰) yesterday called on the government to ease the regulations on Chinese investment in the local property market, saying Chinese buyers deserve the same treatment as investors from other nations. As of March this year, foreign capital accounted for 311 property deals and 804 land deals, while Chinese investors were involved in only nine, the Taichung-based developer said. Lai blamed the gap on stricter requirements on Chinese investors, who can only apply for 50 percent mortgages, must stay in Taiwan for four months a year and own the property for at least three years before selling.
More firms eyeing China
The number of applications for investment in China by Taiwanese companies approved in the first five months of the year jumped 120.62 percent year-on-year to 214, Investment Commission data showed. Investment Commission Executive Secretary Chang Min-pin (張銘斌) said many Taiwanese technology companies are willing to invest in China as the economy has been showing strong growth. However, the commission’s data showed that the value of approved China-bound investment by Taiwanese companies fell 24.4 percent year-on-year in the five-month period to US$2.57 billion. This was mainly due to a relatively high comparison base as the commission gave approval early last year for contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) to invest US$1 billion building a 12-inch wafer plant in Nanjing.
Acer to launch taxi service
Acer Inc (宏碁) and Taiwan Taxi (台灣大車隊) yesterday announced a partnership that could help taxi drivers earn an additional NT$3,000 to NT$6,000 (US$99 to US$197) a month by using the Taiwanese PC vendor’s service that identifies transportation demand hot spots. The service, which uses Acer’s artificial intelligence and big data analysis capabilities, is set to be launched in the second half of this year. Taxi drivers using the service are expected to benefit by one to two additional fares per day.
Inflation spurs greenback
The US dollar yesterday rose against the New Taiwan dollar, gaining NT$0.040 to close at NT$30.401, amid concerns that rising inflation in the US would prompt the US Federal Reserve to keep raising its key interest rates, dealers said. The greenback opened at the day’s high of NT$30.420 and fell to NT$30.353, before rebounding later in the trading session. Turnover totaled US$608 million. Buying by foreign institutional investors on the local equity market helped the NT dollar fend off downward pressure and recoup its earlier losses, they said. Foreign institutional investors bought a net NT$1.4 billion of shares yesterday, Taiwan Stock Exchange data showed.
Amended act to take effect
An amendment to the Money Laundering Control Act (洗錢防制法) is to come into effect on Wednesday next week which stipulates that undeclared foreign currency and negotiable securities exceeding a certain amount carried in or out of the nation would be confiscated. Under the revised act, passengers entering or leaving Taiwan with local currency exceeding NT$100,000, foreign currency exceeding US$10,000, Chinese currency exceeding 20,000 yuan or other negotiable securities should make a declaration with customs officers.
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
DIVERSIFICATION: Although COVID-19 would push more companies to produce in emerging markets, DBS said that it was unlikely that firms would totally leave China Geopolitical tensions and supply disruptions are expected to accelerate the migration of manufacturing out of China, as concerns about the risk of production concentrated in one country increase, S&P Global Ratings said. Although its economic expansion might be weaker than previous levels due to the accelerated relocation of manufacturing, China’s economic growth would still be stronger than that of most other economies, the ratings agency said. “While absolute growth rates will moderate, we believe China’s economic performance will continue to be a key sovereign credit support,” S&P Global Ratings credit analyst Tan Kim Eng (陳錦榮) said in a statement on Thursday. “Its growth
Taiwan’s corporate landscape has changed significantly over the past 20 years, with Hon Hai Precision Industry Co (鴻海精密) replacing Formosa Plastics Corp (台塑) as the revenue leader, while Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) has emerged as the most profitable firm, a survey of Taiwan’s 50 largest companies published on Tuesday last week showed. The Chinese-language CommonWealth Magazine survey ranked Taiwan’s 50 largest companies based on their revenue last year, and compared them with the results of a similar survey it conducted in 2000. Only 33 companies on the original list remained in this year’s rankings, the survey found, following two
GEOPOLITICAL RISKS: Beijing announced plans to strengthen ‘enforcement’ in Hong Kong, sparking losses across Asia led by the Hang Seng’s 5.6 percent plunge Local shares on Friday ended sharply lower amid renewed tensions between the US and China over Chinese telecommunications equipment giant Huawei Technologies Co Ltd (華為) and China’s plan to introduce a national security law in Hong Kong. The TAIEX on Friday finished down 197.16, or 1.79 percent, at 10,811.15 on turnover of NT$177.183 billion (US$5.9 billion), almost flat from a close of 10,814.92 on May 15. The market was down across all major sectors, in particular electronics shares, which finished down 1.99 percent from Thursday’s close. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest wafer foundry and a chip supplier